5.04.075 Exemptions – Review by director.
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A. The following persons and organizations shall be exempt from paying the base business license fee and the business license fee surcharge; provided, that they seek and obtain review and approval of same from the director of financial and management services or his or her designate and are issued a determination of exemption, as set forth in this chapter:
1. Gross Receipts Threshold. A person who generates annual gross receipts from engaging in business within the city that are equal to or less than $2,000.
2. Governmental Entities. A governmental entity engaging the exercise of governmental functions.
3. A nonprofit organization created for fundraising activities only, that meets all of the following criteria:
a. An organization exempt from tax under Section 501(c)(3), (c)(4), or (c)(10) of the federal Internal Revenue Code (26 U.S.C. Section 501(c)(3), (c)(4), or (c)(10)); and
b. The members, stockholders, officers, directors, or trustees of the organization who do not receive any part of the organization’s gross income, except as payment for services rendered; and
c. The compensation received by any person for services rendered to the organization does not exceed an amount reasonable under the circumstances; and
d. The activities of the organization do not include a substantial amount of political activity, including but not limited to influencing legislation and participation in any campaign on behalf of any candidate for political office; and
e. The activities of the organization solely include “fundraising activities,” including soliciting or accepting contributions of money or other property or activities involving the anticipated exchange of goods or services for money between the soliciting organization and the organization or person solicited, for the purpose of furthering the goals of the nonprofit organization.
4. Casual or Isolated Sales. A person who engages only in casual and isolated sales, which means a sale made by a person who is not engaged in the business of selling the type of property involved. Persons who hold themselves out to the public as making sales at retail or wholesale are deemed to be engaged in business, and sales made by them of the type of property which they hold themselves out as selling are not casual or isolated sales even though such sales are not made frequently.
5. For purposes of the license by this chapter, any person or business whose annual value of products, gross proceeds of sales, or gross income of the business in the city is equal to or less than $2,000, and who does not maintain a place of business within the city, shall submit a business license registration to the director or designee. The threshold does not apply to regulatory license requirements or activities that require a specialized permit.
B. The following persons and organizations shall be exempt from paying the business license fee surcharge only; provided, that they seek and obtain review and approval of same from the director of financial and management services or his or her designate and are issued a determination of exemption:
1. Nonprofits and certain organizations exempt from federal income tax including but not limited to:
a. Religious. A nonprofit business operated exclusively as a place of worship.
b. Civic, Service and Social Organizations. Civic groups, service clubs, and social organizations that are not engaged in any profession, trade, calling, or occupation, but are organized to provide civic, service, or social activities.
c. Certain Organizations Exempt from Federal Income Tax. An organization that files with the city a copy of its current IRS 501(c)(3) exemption certificate issued by the Internal Revenue Service and which does not generate revenues from retail sales or services.
2. State or Federal Preemption. A person whose business activities are exempt from business licensing due to preemption by state or federal law.
3. Medicaid-Funded Nursing and Boarding Homes. Nursing homes licensed under Chapter 18.51 RCW and boarding homes licensed under Chapter 18.20 RCW which provide care under contract with the Department of Social and Health Services to persons who are Medicaid recipients.
4. Gross Receipts Threshold. A person who generates gross receipts from engaging in business within the city revenue that are greater than $2,000 and equal to or less than $50,000. (Ord. M-4390 § 2, 2022; Ord. M-4239 § 3, 2018; Ord. M-4192 § 3, 2017; Ord. M-4091 § 1, 2014; Ord. M-3774 § 5, 2006)